Top 10 shocking impacts of Trump's tarriffs
Top 10 shocking impacts of Trump's tarriffs
What is Trump Tarriffs 2025?
Introduction
Since US President Donald Trump's global tariff policy went into effect, American consumers of many goods will now have to pay more for their imports.
Since returning to office in January, Trump has threatened and enacted a number of import levies. The rates at which these taxes are imposed vary greatly.
Goods from certain countries with which Trump has political grievances are subject to especially high rates. The cost of goods from other countries will be reduced if Trump has agreements with them. Trump says the tariffs boost American manufacturing and protect jobs.
💼How do tariffs work and what are they?
💰Tariffs are taxes that are added to goods bought from other countries. Most of the time, they are shown as a percentage of the value of the product.
💰A 10% tariff means that a $10 item costs $1 to import, which adds up to $11 (£8.35) for the importer.
👉The government makes businesses that bring things into the US pay taxes.
💵Customers may have to pay all or part of the extra cost. Businesses could also decide to bring in fewer things.
👉At the end of May, a US trade court ruled that Trump could not put some of the tariffs he had announced because he had already used his national emergency powers.
⚖️But the following day, an appeals court decided that the relevant taxes could stay in force while the case was still pending.
🤔What is the purpose of Trump's tariffs?
Tariffs, according to Trump, will boost tax income, attract investment, and persuade Americans to buy more products made in the United States.
His goal is to reduce the trade deficit, which is the difference between the value of goods the US buys from other countries and the value of commodities it sells to them. He claims that "cheaters" have taken advantage of America and that foreigners have "pillaged" it.
The president has imposed different taxes on specific goods and imports from specific countries. Since then, a large number of these have been altered, delayed, or cancelled entirely.
Trump's opponents accuse him of using his audacious and sometimes contradictory policy declarations as a negotiating tactic to influence trading partners to make deals that benefit the US.
Apart from the tariffs, Trump has also asked for other things. He said that all three countries must do more to stop the flow of migrants and illegal drugs into the United States, and he announced the first tariffs of his current term against China, Canada, and Mexico.
On July 14, Trump issued a separate statement warning that if a deal to end the conflict in Ukraine was not reached within 50 days, he would impose high tariffs on companies that trade with Russia.
💡Which goods are subject to U.S. tariffs?
Tariffs on imports into the United States apply to the following items:
✅50% import duties on aluminium and steel
✅Starting on August 1st, there will be a 50% import tax on copper.
✅25% tax on foreign-built vehicles and imported engines and other auto components
👉Although no further details have been confirmed, Trump threatened to impose a 200% tariff on pharmaceutical imports on July 8.
👉Trump also said the global tax exemption for goods under $800 will end on August 29.
To prevent Americans from purchasing inexpensive apparel and household items from internet merchants like Shein and Temu, The so-called "de minimis" exception for goods coming from Hong Kong and China had already been removed by him.
What kinds of tariffs have the US placed on particular countries?
A patchwork of different tariffs has now been established. Several of them stem from Trump's announcement on April 2 that a 10% "baseline tariff" would be imposed on all other imports from all countries.
In response to unfair trade practices, the president of the United States declared that goods from approximately 60 others would be traded.
Tariffs would be raised on partners, who the White House called the "worst offenders." These so-called "reciprocal" duties were later postponed for 90 days to allow for the negotiation of separate trade agreements.
The deadline was subsequently shifted to August 1st and then August 7th.
💡Currently applicable tariff rates include:
💰 50% tax on Brazilian goods.
💰 30% tariffs are applied to South African goods.
💰 Vietnamese goods are subject to 20% import duties.
💵Import taxes on Indonesian goods are 19%.
💰Import taxes on Filipino goods are 19%.
💵Japanese imports are subject to a 15% tax.
💵South Korean imports are subject to a 15% tax.
On August 27, it is anticipated that the tariff on Indian commodities will rise to 50% as a result of Delhi's purchases of Russian oil. The European Union is one of those that has been successful in reaching a deal with the United States during Trump's window for negotiations. Late in July, the two sides agreed to apply 15% tariffs to European products, including cars. The deal will give US businesses 0% tariffs on a variety of goods, but it needs to be approved by all 27 EU nations.
(Trump claimed that the accord was "the biggest deal ever made" with Ursula von der Leyen, the president of the European Commission.)
During Trump's second term in office, some of the first tariffs were imposed on China, Canada, and Mexico. These were later altered, extended, or postponed.
There will be a 35% tariff applied to all Canadian imports in addition to the current taxes. This excludes goods covered under the current North American free trade agreement (NAFTA) between the United States, Canada, and Mexico.
Trump, however, has delayed the increase of tariffs on all Mexican goods for another 90 days in an attempt to come to an agreement. Trump had earlier threatened to increase any retaliatory taxes on US goods by at least 30%.
The United States and China continue their ongoing trade negotiations. Both countries had raised their tariffs on each other's goods to more than 100% before a temporary rate cut of 90 days.
This pause will end on August 12. Earlier this week, top US and Chinese officials met to try to extend the truce deadline. Li Chenggang, China's trade negotiator, said Beijing and Washington agreed to work towards sustaining the truce, which temporarily halted some measures against each other. Scott Bessent,
The US Treasury Secretary, said Trump will make the final decision on whether to offer an extension. What is the actual process of negotiating trade agreements?
🚨Top 10 shocking impacts of Trump's tarriffs
1. The price paid by American consumers
Tariffs were presented as a tax on foreign businesses, but in reality, they increased the cost of commonplace goods for American consumers, including food, electronics, clothes, and washing machines.
2. The U.S. business burden of over 80 billion dollars
The additional expenses paid by American producers and importers were tens of billions, although they were never entirely transferred to China or other nations.
3. Significant Farm Losses and Bailouts
China cut back on American agricultural imports (corn, soybeans, and pork) in retaliation. Bigger than the 2009 auto bailout, U.S. farmers lost billions and required a $28 billion federal bailout.
4. Job Losses in Manufacturing
Due to rising input costs, many firms who depended on imports for their automobiles, machinery, and electronics lost jobs, even if other industries, like steel, benefited. Economists estimate that overall, more jobs were lost than created.
5. Increasing Global Trade War
China, the EU, Canada, and Mexico retaliated by imposing their own tariffs on American goods, which affected U.S. exports ranging from Harley-Davidson motorbikes to whisky.
6. Increased Prices for American Businesses
Increasing steel and aluminium prices caused hundreds of millions of dollars in losses for companies including GM, Caterpillar, and Harley-Davidson, prompting some to relocate their operations abroad.
7. Minor Manufacturing Refund
Although promised, tariffs failed to revive large-scale U.S. industry. Even while some plants reopened, overall output either stayed the same or shifted from China to other low-cost nations like Mexico or Vietnam.
8. How unpredictable stock markets
can be Businesses and investors became uneasy due to the stock market volatility that followed tariff announcements.
9. A larger national debt
Tariff revenue was much less than the cost of lost economic activity and farm bailouts. During this time, rather than cutting deficits, the U.S. debt skyrocketed to $27 trillion.
10. Restricted International Partnerships
Trump's tariffs have weakened cooperation on international trade rules against China and caused diplomatic rifts with even close allies like Canada, the EU, and Japan.
✅ In summary,
The Trump tariffs were intended to penalise China and increase American manufacturing, but the startling truth was that Americans would have to pay more, there would be worldwide retaliation, farm bailouts, and there would be little increase in employment or industry.
What tariff agreements have the US and the UK made?
At 10%, the UK and the US have agreed on the lowest tariff rate to date. Approximately £58 billion worth of goods, primarily machinery, cars, and pharmaceuticals, were shipped from the UK to the US in 2024.
The 10% rate applies to the first 100,000 cars shipped from the UK to the US each year, which is roughly equivalent to the number of cars sold in 2024.
Any vehicle that went over the quota would be subject to the standard car tariff of 25%. The agreement also allows both countries to sell beef to each other,
Despite the government's insistence that the UK's more stringent food safety laws would remain unchanged. Some US ethanol that was previously subject to 19% tariffs will now be duty-free.
A first framework agreement was reached between the two countries in May. During the June G7 summit in Canada, Trump said "the deal was done.
" But he did not endorse the expected removal of the tariffs on UK steel imports mentioned in May. Despite being the only country exempt from paying 50% of the penalty, steel and aluminium still have a 25% duty.
Chris Mason: Tariffs are a win for Starmer to a certain extent. What does the tariff agreement between the United States and the United Kingdom cover?
How have Trump's tariffs affected the world economy?
Trump has made many remarks that have caused companies to sell their shares, which has caused global stock markets to be volatile.
The markets, however, have been more stable recently. Due to the knock-on effects on interest rates, employment, and pensions, many people are affected by changes in stock market prices even if they do not directly buy shares.
The value of the US dollar, which is generally regarded as a safe asset, has also occasionally dropped sharply.
How would a drop in share prices affect me personally?
What makes a drop in the US dollar important?
Both the International Monetary Fund (IMF) and the well-known Organisation for Economic Co-operation and Development (OECD) lowered their 2025 projections for global economic growth as a result of the tariffs.
Both organisations expect a big effect on the US economy. In 2025, the US economy shrank in the first three months before growing at a 3% annual rate from April to June, according to the latest data.
The president insists his trade policy works, despite the fact that prominent members of his own Republican Party have joined opposition Democrats and world leaders in criticising the policies.
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